Light (LIGT3) Q1 2025 earnings summary

Executive summary

• Net income reached BRL 419 million in Q1 2025, reversing a loss from the prior year and marking the best first-quarter performance since 2015.

• Net revenue was BRL 3.7 billion in Q1 2025, up as much as 13% year-over-year.

• Cash position improved to BRL 3.6 billion, an increase of BRL 500 million since December 2024.

• Net debt dropped to BRL 4.2 billion, a reduction of up to 55% year-over-year, reflecting successful restructuring.

• Focused on operational efficiency, process improvements, and cultural transformation to sustain recovery.

Financial highlights

• Adjusted EBITDA reached up to BRL 579 million, up as much as 259% year-over-year, driven by margin improvement and lower energy purchase costs.

• Operating cash generation increased year-over-year despite higher investments; CAPEX grew up to 71% to BRL 296 million.

• Distribution segment delivered best Q1 quality indicators since 2015, with DEC and FEC well below regulatory limits.

• Generation and trading EBITDA declined due to contract changes and higher replacement costs.

• Retail collection rate improved, reaching up to 98.6% over the last 12 months ending March.

Outlook and guidance

• Ongoing focus on efficiency, cash conservation, and operational improvements.

• Continued execution of the Judicial Reorganization Plan, including a reverse auction and planned capital increase.

• Awaiting ANEEL's decision on concession renewal, expecting a sustainable outcome.

• Strategic investments in infrastructure and technology to sustain quality improvements.

• Market growth partially benefits the company due to migration to distributed generation.